Council Asked for Spending Priorities in Lead Up to FY13 Budget

City Manager Lehman Walker highlighted University City's fiscal situation at Monday evening's study budget session, and asked council for direction in narrowing down the city's spending priorities.

The City is holding public meetings and study sessions as it begins the process for the 2012-2013 (FY 13) Fiscal Year.

PROJECTED DEFICITS

City staff has not received a cost of living increase for three years. One of two budget projections put forth by the city for FY13 includes a two percent Cost of Living Allowance increase. That budget projection estimates a projected deficit of $484,260.

The other budget model that does NOT include a cost of living increase, estimates a budget deficit of $233,021.

"I would love to see a COLA (Cost of Living Allowance) but not at the expense of laying people off," said Councilmember Byron Price (Ward 3). "I would not want to do that."

Walker then went over some Planned Capitol Improvements for Next Fiscal Year. They include $60,000 for upgrading the telephone system at City Hall; nearly $700,000 for replacing Ferguson Bridge; and $128,000 for resurfacing the Loop North Parking Lot – that’s the areas behind Cicero’s.

WHERE DOES THE CITY SPEND ITS MONEY?

The city spends nearly half of its budget - 45 percent - on police and fire. The remaining 55 percent is spent on public works, community development and "very much" on recreation, said Walker.

Walker said in the coming months the administration will begin doing some analysis on big-ticket items like Centennial Commons. He said the city spends nearly $900,000 a year on the facility, which he believes is “very much under-utilized. “

“We need to look at increasing usage of that facility,” said Walker. “It does not get the use that I believe the residents of University City would like it to have.”

University City Mayor Shelley Welsch said Centennial Commons is taking a lot of money, and yet only has 1,000 members in a city of 35,000 people.

"I think a lot of our residents don't use the facility because of its cost," Welsch said. She said staff has been asked to provide information on how it can build membership, and she looks forward to the report.

POLICE AND FIRE

The council appeared to agree that it did not want to touch the budgets of the police and fire departments.

“The Council can direct me otherwise, but I’m assuming police and fire are areas you are not interested in really touching,” inquired Walker. “So that leaves us with other areas that we need to take a look at.”

"I would not want to see fire or police down to the brass knuckles," said Councilmember Arthur Sharpe Jr. (Ward 3).

Program Operations Costs

Amount                % of Budget          Operations Programs
$7,593,868             24.9%                 Police 
$365,619                 1.4%                  Municipal Court
$4,243,084             16.4%                 Fire
$665,550                 2.6%                  Public Works-Admin. and Engineering
$2,284,182              8.8%                  Public Works-Street Maintenance
$2,025,029              7.8%                  Public Works-Park Maintenance
$1,508,545              5.8%                  Community Development Operations
$579,991                 2.2%                  Community Dev. - Golf
$125,190                 0.5%                  Community dev. - Community Center
$262,707                 1.0%                  Community Dev. - Aquatics
$883,138                 3.4%                  Community Dev. - Centennial Commons

TOTAL: $20,537,903

RETHINKING BUDGET STRUCTURE

Councilmember Stephen Kraft (Ward 1) said the city needs a better way of accounting for its capitol costs, so that the budget, when presented, is more user-friendly.

For example, Kraft said when he looks at the budget he wants to know how many police cars the city is buying that year. 

"We need a philosophical rethinking of how this budget is structured, and the main area that needs to be restructured is the capitol costs," said Kraft.

"So, we don't have to leaf through the documents and ask endless questions. So, that the data is actually right there and it’s easy to understand," said Councilmember Kraft.

Walker said he has asked the staff to come up with a different format for the budget. He said last year's budget included information that was not in the previous budget. "We're moving in the direction of making the budget more readable," said Walker.

The city has scheduled a public budget meeting for Thursday, November 17th at Mt. Gideon Church, located at 6505 Etzel Ave.

A Draft Budget will be presented to the City Council on February 27, 2012.